NABARD Subsidy for Dairy Farming


In most of the rural areas, dairy farming is the main source of earning a livelihood, and this business is one of the unorganized sectors in India. The Government of India is trying to make efforts on a continuous basis to give assistance for setting up a dairy farm business.

How to get NABARD Subsidy for Dairy Farming?

Department of Animal Husbandry, Dairying[1], and fisheries in the year 2005 launched a scheme known as Venture Capital Scheme for Dairy and Poultry just for the sake of assisting the business of the dairy farm, as per this scheme the loans were provided with 0 interest rate for setting-up of a dairy farm. As with the growth in this business, the Government of India launched a new scheme known as Dairy Entrepreneurship Development Scheme with NABARD.

NABARD Subsidy for Dairy Farming:

In order to encourage the business of dairy farming, the Government of India along with NABARD launched a scheme. The scheme was launched with the objective of:

  • To promote the business of dairy farm for setting up of units.
  • To encourage for conserving good breeding stock.
  • To upgrade the traditional technology for handling the milk on a commercial
  • To generate employment for the people of India.

What is the eligibility Criteria for availing subsidy?

Following persons shall be eligible to avail subsidy;

  • Individual Entrepreneurs.
  • Body Corporate.
  • Groups of organized and Unorganized Sectors.

One member of a family can only avail the benefit of the scheme if more than one member avail the scheme then the different member shall open different units in different locations. The distance between the two units/ farms should be at least 500m.

What are the steps for getting NABARD Subsidy for Dairy Farming?

  1. Firstly you have to decide which type of business you will set-up that will pertain dairy farming.
  2. Company Registration or NGO Registration.
  3. Prepare a business plan and that should also include a statement regarding requesting bank for the loan.
  4. Submit a request for a loan to any bank whether co-operative, commercial, rural which are eligible to re-finance from NABARD.
  5. After the loan has been sanctioned the promoter has to implement the project.
  6. On disbursement of the first installment, the bank which has granted the loan shall apply to NABARD for releasing the NABARD Subsidy.
  7. After the bank has applied for the grant of subsidy NABARD would release the same. The bank shall hold that subsidy in an account known as “Subsidy Reserve Fund Account”.
  8. If the promoter satisfies the loan criteria then the bank shall adjust his subsidy with the amount of the loan.

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